Directions: Complete the following practice exercise by recording your responses on the spreadsheet template. Reems's Photo...

 

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Directions: Complete the following practice exercise by recording your responses on the spreadsheet template. Reems's Photo Albums carries a brand of card that has proven to be very popular. Reem uses a perpetual inventory system. All purchases and sales are made on account. The following are the purchases and sales for this product for the month of October. a. Calculate the cost of goods sold and ending inventory using the FIFO method of inventory valuation. b. Calculate the cost of goods sold and ending inventory using the LIFO method of inventory valuation. c. Calculate the cost of goods sold and ending inventory using the Average Cost method of inventory valuation d. Record the journal entries for the October 9 purchase and the October 12 sale using the Average Cost method. 1 2 3 Date 4 Beginning Inventory Purchases Units Cost Sales Units Price 7 $9 5 $12 12 $10 5 Oct. 2 6 Oct. 9 7 Oct. 12 8 Oct. 25 9 Oct. 30 19 $11 10 93 $12 $13 Directions: Complete the following practice exercise by recording your responses on the spreadsheet template. Reems's Photo Albums carries a brand of card that has proven to be very popular. Reem uses a perpetual inventory system. All purchases and sales are made on account. The following are the purchases and sales for this product for the month of October. a. Calculate the cost of goods sold and ending inventory using the FIFO method of inventory valuation. b. Calculate the cost of goods sold and ending inventory using the LIFO method of inventory valuation. c. Calculate the cost of goods sold and ending inventory using the Average Cost method of inventory valuation d. Record the journal entries for the October 9 purchase and the October 12 sale using the Average Cost method. 1 2 3 Date 4 Beginning Inventory Purchases Units Cost Sales Units Price 7 $9 5 $12 12 $10 5 Oct. 2 6 Oct. 9 7 Oct. 12 8 Oct. 25 9 Oct. 30 19 $11 10 93 $12 $13